Hospitality operations

Hospitality Operations and Revenue
Management
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Abstract
In the hospitality industry, there are several ways to earn a profit, and the number of
services is provided by the hotel, tours, and travel and event companies. They have a
large business unit by giving room facilities and maximizing their prices. Therefore, the
report has significantly shown concepts of room' revenue under which services like
laundry, entertainment and wi-fi facilities, and others are available. Also, the industry
has been affected by many laws, legislation of equality and fair treatment, equal pays to
staff, and customer rights.
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Table of Contents
Abstract..............................................................................................................................2
Introduction........................................................................................................................3
1. Explain the financial unit that the room's revenue-producing areas make to the
business unit......................................................................................................................4
2. Demonstrate and apply principles of pricing to the room's product and evaluate the
potential benefit..................................................................................................................6
3. State and evaluate methods used to optimize profitability as applied to a fixed
capacity inventory, recognizing dynamic growth in related technological developments. 8
4. Explain how industry codes of conduct, legislation, and best practice directly affect
accommodation procedures............................................................................................10
5. Identify the expectation of customers from diverse markets and explain how providers
of accommodation meet their needs through effective use of quality management
processes and design......................................................................................................12
References.......................................................................................................................15
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Introduction
The hospitality industry is one the largest industry in the business environment
that makes revenue and large operations. In the hotel and travel and tourism sectors,
several sources are entitled to make revenue. Every hotel unit has emerged with
revenue operations. In this industry, one major investment leads to results in high
revenue operations into the future. Hotels are mainly earned by food, beverage, and
accommodations services.
People are ready to pay a high amount to get a comfortable experience in living and
having the best food.
Therefore, these hospitality sectors have their main aim to generate many profits by
making an equal contribution in each unit and keep a check on diversified functions that
a hotel performs. To understand more clearly about these operations, Marriott hotel is
undertaken to know about how the hotel makes their profitability grow by working on
customers demand and evaluation of different tools and principles(Buhalis, and Leung,
2018).
The hotel is an international group headquarters in the United States established in the
year 1957. The hotel covers a worldwide area to serve their hospitality services across
the globe. The total number of hotels is over 7000 with 1.38 million rooms in 134
countries. This report is going to evaluate their pricing principles and major sources of
their revenue generation.
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1. Explain the financial unit that the room's revenue-producing areas make to the
business unit.
In the hospitality industry, the investment is of one time which gives higher sources and
proof of creditability in making revenue. In this business unit, the major departments and
units are food, beverages, accommodations, casino, bars, and many more. Hotels
charge prices for each service they provide at their accommodation wherever clients
invest their time.
A hotel is known for the best and strict pricing policy where customers could not
bargain to make their price as these are set by finance departments. The major
advantage that a hotel consist is of standard services and no less or due schemes
(Filimonau, and Delysia, 2019). Mainly, Marriott hotels target high-class people who
afford standard services at their standard prices. But every advantage has some
limitation, as far as the hotel are their price maker but they have to be influenced by
various policies and legal legislation. So that, they cover its cost through various ways
and effective sources without lowering down their image into the market. These sources
of room division are defined below:
Room sales: sales are the most integrated part of a business unit that needs to
maintain and increase with the period. In the hospitality industry, sales are generated
by providing a high classroom facility on which they charge a high amount and people
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are ready to pay because of their conformable amenities within rooms. Hotel Marriott
has 1.38 million rooms across all over the world in all locations where they have their
hotels. It provides high-class facilities in one single room by classifying it into different
sections such as classic, deluxe, premium, and suite. These rooms differ in size,
facilities, bathrooms facilities, and either attraction. As people want highly attractive
decor, large size, bathtubs, a sound system they go for the suite or deluxe rooms. It is
the biggest source of revenue generation.
Laundry: Hotels make their sales in various ways, in which laundry is one of
them. Every large hospitality organization provides this service to give a convenient
facility and home living experience. Hotel Marriott enables laundry facilities into rooms
itself where one calls for laundry services, staff will provide washable clothes in very
little time (Gibson, and Parkman, 2018). These services are fast and reasonable as the
hotel charges $50 for normal clothes and a quite extra charge for heavy clothing. It is
also the best source to earn extra cost as many tourists prefer to take advantage of this
service who stays for a long time.
Entertainments and leisure tickets: The hotel provided another attractive
facility into their premises. The best role hospitality industry plays are entertainment
sources which tourist is attracted towards them. Every hotel finds its unique ways of
entertainment sources some are launching live shows, concerts, VCR cinemas,
casinos, and bars. This entertainment keeps the customers attracted and happy with
some innovative gestures. Hotel Marriott consists of these facilities as a source of
further revenue through providing nightclubs, rooftop performances, and leisure for
outside tourists to explore the city with travel facilities.
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